Sagen MI Canada Inc · TSX:MIC.PR.A

Sagen MI Canada — Genworth MI Canada — Q4 2013 Earnings Presentation

13 slides from Sagen MI Canada's earnings presentation, Feb 5, 2014

  1. Slide 1: Fourth Quarter 2013

    Genworth MI Canada Inc. Fourth Quarter 2013 February 5, 2014

  2. Slide 2: Forward-looking and non-IFRS statements

    Forward-­‐looking and non-­‐IFRS statements This presenta>on includes certain forward-­‐looking statements. These forward-­‐looking statements include, but are not limited to, statements with respect to the Company’s future opera>ng and financial results, expecta>ons regarding premiums wriIen, capita

  3. Slide 3: 2013 Financial highlights

    2013 Financial highlights Key messages: 2013 Y/Y1 § Solid earnings performance and Y/Y book Net Opera6ng Income $349 million +3% value growth of 6% § Low loss ra>o driven by strong poreolio Opera6ng ROE 12% (1pt) quality and favourable economic condi>ons Opera6ng EPS (diluted) $3.60 +5% § Steady

  4. Slide 4: Market influencers

    Market influencers Dynamics Business implica6ons Housing Market: Premiums Wri_en: § Balanced supply and demand § Flat to modest premium growth § Resale volumes and home prices up § Credit quality expected to remain high modestly Losses on Claims: § Losses should con>nue to perform well Macro-­‐e

  5. Slide 5: Insurance portfolio strength

    Insurance poreolio strength 720 726 727 727 730 733 Key highlights: Credit score 08 09 10 11 12 13 § High quality insurance wriIen in 2013 § Average credit score remains strong – up 13 ($000’s) pts since 2008 § Average home price rela>vely stable – up an Home price 256 266 284 296 301 302 average

  6. Slide 6: Delinquency trends

    Delinquency trends Number of Reported Delinquencies Key highlights: § Modest increase in Q4 due to typical 2153 seasonality Other 240 1963 § Decrease in delinquencies driven by stable 1778 1778 1830 249 employment and improving housing markets Quebec 515 255 259 252 § Declining YoY trend in most

  7. Slide 7: Q4 2013 Financial highlights

    Q4 2013 Financial highlights $MM except EPS and BVPS Q4’13 Q3’13 Q4’12 Key messages: Net premiums wriIen $129 $161 $117 Strong business execu>on Net premiums earned 142 143 147 contribu>ng to solid profitability and BVPS growth Losses on claims 31 32 46 § Lower premiums wriIen reflect Expenses 33 27

  8. Slide 8: Top line impacted by seasonality

    Top line impacted by seasonality Premiums Wri_en ($millions) Key highlights: $161 High loan-­‐to-­‐value: $119 MM in Q4 $137 18 $129 $119 § 17 % lower QoQ consistent with seasonality 26 11 § 16% increase YoY reflects normaliza>on of 17 market size resul>ng from prior product change $84 impact 11 14

  9. Slide 9: Profitability driven by low losses

    Profitability driven by low losses Underwri6ng profitability ($millions) Key highlights: § Premiums earned primarily driven by average Premiums earned $147 $144 $143 $143 $142 size of recent books Losses on claims 32 31 § Low loss ra>o of 22% in Q4 and 25% for 2013 46 44 35 § Expense ra>o of 23% in

  10. Slide 10: Investments contribute steady income

    Investments contribute steady income Key highlights: § High quality mandate con>nues to drive Common Equity Cash investment decisions 3% 4% § Reduced equi>es by $35 million and realized $8 million gain in Q4 Corporates § Near term reinvestment pressure due to low 42% Federal yields, but well-­‐po

  11. Slide 11: Strong capital position

    Strong capital posi>on Minimum Capital Test Ra6o (MCT) Key highlights: § Successful ac>ons taken to balance capital 216% 216% 218% 222% 210% strength and efficiency 31% 31% 33% 35% • MCT up 4 points QoQ 25% • $105 MM share buyback in 2013 • 9% ordinary dividend increase in Q4’13 • Holding company cas

  12. Slide 12: Strategic priorities

    Strategic priori>es § Maintain disciplined underwri>ng and insurance poreolio quality strength § Capitalize on sales momentum § Enhance customer experience through innova>on § Ongoing focus on balancing capital strength with efficiency § Con>nue to help shape regulatory environment § Invest in o

  13. Slide 13: Question and Answer

    Ques>on and Answer SAMANTHA CHEUNG Contact: VP INVESTOR RELATIONS 905 287 5482 samantha.cheung@genworth.com www.genworth.ca Genworth MI Canada Inc. 13 Q4 2013 February 5, 2014

Genworth MI Canada — Q4 2013 Earnings Presentation on 6ix